Which is More Profitable?

[uswa56]

Real estate will always profit in both renting and buying/selling. It depends on when the property was purchased, the purpose of its purchase, how lucky the realtor is in terms of negotiation and the value the property garnered over some period according to some factors which are not limited to the location.

And that's another way of circulating money for those who already have better funds financially. But, if I have more funds, I want to turn it around to trade items of goods that are basic daily necessities, such as rice, wheat, cooking oil or others.

Although the profit is small, there is a round every day, if in the property sector you have to spend a large amount of money at first, always wait for the right time and the right potential buyer.

It is true that it will indeed depend on a person's financial condition to continue to produce money with the funds they have and also their ability to manage their finances, if you choose to sell basic necessities even with a small profit that you will get and also have a little risk from the business you run but still requires skills to be able to attract customers so that the business can survive and continue to make profits.

To be able to run a property business, of course, requires a larger capital compared to the business of selling basic needs, but if we choose an inappropriate location, of course, it takes a short time to be able to attract interest so that the property we have can be sold by making appropriate profits, so both of these things certainly require good skills to be able to make a profit from it.

[barisbilgili]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

In this case it really depends on how much the house is needed or not in your area or how much real estate has good prospects for investment travel. I see a slight difference with both patterns where if the house is made to be rented out the prospect of returning money will be much longer because the house is rented out but this is good for investment support. While Real Estate is made to be resold and this really depends on how the house is traded because in my area people usually tie the Real Estate to a third party, namely the bank.

Both have good prospects but the returns or profits obtained are not in the near future. But as far as I see especially in my area the prospects for both are still the best investment choices that people make. It takes a lot of capital to build a house so this kind of investment can only be done by people who have enough money.

It all goes back to the plan we made from the beginning and how the desire to take advantage sometimes there are also entrepreneurs who want assets to remain with a long return on capital by renting and they still have assets until the future and there are also those who want a quick return on capital and profit by selling it, there is nothing wrong with either of them.
And I think it doesn't only apply in your area, almost in all places like that and it all comes back to a person's desires and of course regarding profit I think both are the same because basically it cannot be denied that the percentage of profit, large or small, will be worth it with the existing risk.

[ThemePen]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Well, I believe both are quite successful. I have never invested in building apartments before, but I have seen individuals around me invest in real estate. Many people believe that building a residential apartment and selling it is the greatest method to recover their investment. I know someone who does just that, he builds an apartment and then resells it, he has done it for many years and has recovered his investment. Every investment is based on your level of expertise and previous experience. Some individuals build an apartment and rent it out to recoup their investment. As a result, it is up to the individual to choose the option that they believe would give the highest profit.

I also think building apartments for selling or for rental purpose can both be good ways to invest in real estate. And we know that selling apartments can make money for you quickly but renting can give in regular income. But before you decide keep in mind some points like where people want to live in area where apartments are and how much interest you will pay on loan. You also must have knowledge about local rules and how much it costs to build and what it will give after completing and how to manage property.

It is also good idea to do both works means build apartments or rent them out and then sell them when time is right and giving more profit. This can help you spread out risk and make more money.

[liasbaa]

You can always make more money renting than selling.   After all, you are providing a service.  If you are not interested in dealing with tenants, you can hire a rental agency to take care of everything for you.

Exactly, with the only difference that renting will extend the turnover period, while selling will get you paid here and now.
Usually it's easy to decide based on one simple difference. Can you make the money work now, or not?
If you, for instance, have an investment window that will expire in a year or two, you choose to sell. If all you need is money to build or fix another apartment, get a loan for that and do it with bank's money, while paying the loan by charging your tenants.

While it's a good option to take a loan and pay it monthly through the monthly rental, however you cannot assure that your apartment will always be occupied by your tenants as there are some time also that your apartment will be left vacant and so the monthly income will be pending. That's probably the reason why some chose to sell quickly their property once they find a good buyer at a fair price.

After taking the loan, you should have an alternative way to pay it back because you should check whether the rental income from your apartment is sufficient to repay the loan. You should check whether you will have enough from that source within the particular time you will have to repay the bank loan most of the time. In taking apartment based loan you have to check every aspect of location, rent amount and demand otherwise you may face financial loss.

[fuguebtc]

It is also good idea to do both works means build apartments or rent them out and then sell them when time is right and giving more profit. This can help you spread out risk and make more money.

This is only possible if you have a large capital and invest in many different real estate projects , otherwise you cannot both rent and sell if you only have a few apartments . When you rent an apartment to someone, there will be a contract and a lease term, once the lease term is not over , you cannot sell the apartment .

Whether to rent or sell an apartment and which way is more profitable will depend on each person's financial situation and business strategy . If you don't have much capital or your capital is mainly from loans and you need capital for other projects, you cannot use the apartment rental strategy . If you are looking to find and build a passive income source , renting is the perfect choice .

[avp2306]

It is also good idea to do both works means build apartments or rent them out and then sell them when time is right and giving more profit. This can help you spread out risk and make more money.

This is only possible if you have a large capital and invest in many different real estate projects , otherwise you cannot both rent and sell if you only have a few apartments . When you rent an apartment to someone, there will be a contract and a lease term, once the lease term is not over , you cannot sell the apartment .

Whether to rent or sell an apartment and which way is more profitable will depend on each person's financial situation and business strategy . If you don't have much capital or your capital is mainly from loans and you need capital for other projects, you cannot use the apartment rental strategy . If you are looking to find and build a passive income source , renting is the perfect choice .

Since this was been asked so lets assume that the people ask this have enough funds to create this project but struggling to determine which is better since both option promise good return for people who invest in this asset.

But it really matter depends of what is the intention or most likely want to happen. Since if they like passive income profits will come with them then rental properties maybe the best option for them. But the downside of this is it will take for more longer times before they can get a ROI with this since rental fees is so less compare on the amount they spend to construct the property.

But if they are aiming for big and now how to market or know those people who's expert on this field to help them dispose their built properties then for sure that this option is really more better since they can expect to get more huge return on more shorter period of time especially if they can get those spot cash buyers. The down side is choosing the location so they should build their for sale properties on more strategic places so people would really like to buy their built asset.

[MarjorieZimmermanGinger]

It all goes back to the plan we made from the beginning and how the desire to take advantage sometimes there are also entrepreneurs who want assets to remain with a long return on capital by renting and they still have assets until the future and there are also those who want a quick return on capital and profit by selling it, there is nothing wrong with either of them.
And I think it doesn't only apply in your area, almost in all places like that and it all comes back to a person's desires and of course regarding profit I think both are the same because basically it cannot be denied that the percentage of profit, large or small, will be worth it with the existing risk.

It returns to the planning to do and the planning must be accompanied by the intention to make a profit. The house will be increasingly needed so that prospects in the long run will be very promising and building a house to rented can also take monthly profits where homeowners can rent out monthly payments. Building a house is not at risk because we will have assets as a grip and the house is also more priceable over time as a necessity for residence.

So in this stage we can make plans in making money and if building a house for rent can make money on a monthly basis it will be much better. But if the capital we have large building housing to be sold can also generate maximum profits because people's needs for homes are increasing.

[glendall]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

In fact, by renting out an apartment, the investment profit can be obtained within 1-4 years, where I once asked a rental owner who had 6 residential doors, in 3 years the construction funds had been returned and the rest he got profit
I think it is better to rent it out than to sell it

[Cookdata]

In fact, by renting out an apartment, the investment profit can be obtained within 1-4 years, where I once asked a rental owner who had 6 residential doors, in 3 years the construction funds had been returned and the rest he got profit
I think it is better to rent it out than to sell it

I think Real estate investment is subjective to country more particularly cities where industrialization and developments happened all the time. In my country, rent are been paid yearly and are mostly affordable and averagely it will take years depending on where you stay to make back such money. There are locations in my state where yearly rent are as low as $1000 for two bedroom flat , now do the math's before one can make back such money invested.

Although, there are locations where price can go as high as $2000 and above yearly but even with that, how many years do yiu think one will invest into building before one can make back such. Monthly payment is the best deal breaker for such profits, it's not feasible in areas where payment are made yearly and are still low but over time, develop areas become an investment where landed property can be resell to get 2-3 times of your money invested.

[YOSHIE]

Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Talking about apartment investment or often people say it is property investment, of course apartments are currently one of the investments that many investors are looking for, Apart from the high selling or rental value, demand or interest is also high, what's more, the apartment is located in a developed urban area.

Talking about profits, in my personal opinion it is more profitable to rent than to sell even though the selling price is high, but we only take it once.
Whereas renting, you can still earn income within 1-3 years, usually apartments are rented for around 1-3 years depending on the area but that is common, as is monthly money like a sinking fund, parking, maintenance fees and also other things regarding building maintenance, can be charged to the tenant, you can receive the investment returns from a clean apartment by renting it rather than selling it as ownership, that's as far as I know.

[Jody.Drummer]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

In fact, by renting out an apartment, the investment profit can be obtained within 1-4 years, where I once asked a rental owner who had 6 residential doors, in 3 years the construction funds had been returned and the rest he got profit
I think it is better to rent it out than to sell it

Everything requires a process and to return the capital we spend to build an apartment or rental residence will definitely take several years. I see many people who can just sit back and enjoy the rental money every month, that means renting can also be profitable, especially the building and land are still ours, it's different when we sell it.
Many people are more interested in establishing rental housing, especially if they are in an environment where there are many workers from outside the area, because the first thing they will do is look for a place to stay while they work. However, at the beginning the capital we spend must be very large.

[Dewi Aries]

I think both of these options are basically aimed at returning the capital you have spent and also getting more as profit, but for the issue of which is more profitable between selling it or renting it? I think it is clear that renting it will be much more profitable than selling it, and the only problem here is that not everyone can really be patient to get the full recovery of the capital they have spent at the beginning, because of course the payment scenario for rent will be paid slowly either every month or year.

There is no problem with both of these options because the main goal is to return the capital you have spent first, selling it can also be a good idea if you want to get the money back quickly, but when you want to get a bigger profit then renting it is the best idea.

[barisbilgili]

Real estate will always profit in both renting and buying/selling. It depends on when the property was purchased, the purpose of its purchase, how lucky the realtor is in terms of negotiation and the value the property garnered over some period according to some factors which are not limited to the location.

And that's another way of circulating money for those who already have better funds financially. But, if I have more funds, I want to turn it around to trade items of goods that are basic daily necessities, such as rice, wheat, cooking oil or others.

Although the profit is small, there is a round every day, if in the property sector you have to spend a large amount of money at first, always wait for the right time and the right potential buyer.

That's a good plan, I like realistic thinking like you, the most appropriate way to keep money circulating is for basic needs, you will get profit every day even though in small amount with small risk percentage.
But I think for Property business is for those who have big capital with the aim of achieving big profit.
It must be remembered that all businesses that are run get profit that is worth it with initial capital and risk faced.

[ITExpert]

Personally I think it would depend on your own goals and priorities.

If you want immediate money then just sell the property however you need to consider that you are risking selling the property when its value might not be much appreciated yet.

What I really like with renting is there’s regular income but it’s another headache trying to maintain the property and the renters. It is all up to you and what kind of character you have.

If they continue to give property to fulfill their needs, it is a loss for them.  If they continue to give property for their business, then this is the right way because with what they will earn, they will also meet their needs and build their property again. If they do it just for their own time now, they will feel fine, but later they will realize it.  Yes you have rightly said that when you can't pay for something, rent it, but it doesn't mean you rent everything, some essentials that will benefit you tomorrow.  can give  It's really hard if you do it for a long trip. If you make yourself stand in one position, you have an advantage. Yes, if they have character, they should follow these things.

[mamesso]

Businessmen or serial investors who run a business in the Real Estate sector by building residential apartment buildings will get their money back by selling the building to another party for more than the money they have spent. Meanwhile, individual businessmen who utilize their land in strategic locations will make the building a long-term investment by renting it out. Both are equally profitable even though they have different business plans.

[Oluwa-btc]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Well this is quite simple and understandable,so for recouping an investment I think either way of them is good to carry on with and it's possible to either sell or rent it out this Decisions it's up to you cause you know what best is comfortable with you so you won't have any regrets of such.
But if you ask me I'll say it's more profitable when you rent it out, because if not on some occasion yearly you get your dividends from it and you can tend to save it for the unforseen circumstances but selling it out is just an avenue that the property is out of your reach entirely and when you do so you don't get yearly income from it.and when you rent it out there's more chances of recovering it back than selling it.

[TheUltraElite]

A property once built, needs to be rented out if you are not going to live there or have floors available, you could also sell it entirely or some floors eventually. It all depends on how close you are living and if you are having time to maintain that location because tenets will need your help if you rent it out.

Having rented ones means like bank deposits, you get some money every month and continue getting till the resident moves out or you need to maintain it. Selling means getting a major chunk back at one time.

It is a good investment but often generational and takes time if you dont have one already. But this should be in the portfolio of every other investor out there among traditional assets.

[Frankolala]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Real estate is an asset and it generates profit overtime making it worth to invest in. You can choose go sell it and still get a good amount of profit because the cost of building materials increases overtime. There are some people who don't believe in rents because it will take a lot of time for them to get the money that they use in building it.

However, i will prefer to rent it out because it is an investment that can generate profit from genertion to generation as long as you don't sell it. It can be passed on to your children.

[STT]

In fact, by renting out an apartment, the investment profit can be obtained within 1-4 years, where I once asked a rental owner who had 6 residential doors, in 3 years the construction funds had been returned and the rest he got profit
I think it is better to rent it out than to sell it

In the right area and with all construction done by the owners themselves I can believe its extremely profitable at times.  Business should be more profitable then selling it as it involves greater risk.  The court cases relating to tenancy contracts can drag on for years and still cost thousands in both damage and lost rent even if found in your favor.

Under 10 years for a return is quite common even in a normal 'quiet' area presuming no surprises occur.   I know of a landlord who ran multiple occupancy short term letting and got back the entire house cost even though they had no money and loaned everything from a bank.  It was still a job to let out and manage the property and made money, not an easy job always.

[tygeade]

I also think building apartments for selling or for rental purpose can both be good ways to invest in real estate. And we know that selling apartments can make money for you quickly but renting can give in regular income. But before you decide keep in mind some points like where people want to live in area where apartments are and how much interest you will pay on loan. You also must have knowledge about local rules and how much it costs to build and what it will give after completing and how to manage property.

It is also good idea to do both works means build apartments or rent them out and then sell them when time is right and giving more profit. This can help you spread out risk and make more money.

Yeah, it all depends on the region, some are great places to buy and rent, some are not good for any purposes at all and should sell and get out. I personally believe that I would not do this in my country because selling makes a lot more money than renting, so renting makes no sense in my country, I would say house prices are far superior compared to small rent prices. You can get a house for over 200k, and rent it for 600-700 dollars, makes no sense to spend 200k for just monthly 700 dollar income, that's a stupid move.

But you can buy a land for about a million dollars, and spend half a million to build a whole apartment, and then sell each part for 200k, meaning that you can make as much as 4 million dollars from it. It's like that because it's a very big metropolitan area, meaning that finding that land is hard, whenever one is up for sale, someone gets it quickly. So basically, selling houses is better for me, but building and renting it out could be great for someone else.